[China Co-Financing Fund] IDB administers 3 million USD loan to Durli Group subsidiaries in Paraguay for construction of a leather plant (linked to project ID#85133)
Commitment amount
$ 3269549.2436360302
Adjusted commitment amount
$ 3269549.24
Constant 2021 USD
Summary
Funding agency [Type]
People's Bank of China (PBC) [Government Agency]
Recipient
Paraguay
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
On March 6, 2018, IDB Invest (the private sector institution of the Inter-American Development Bank (IDB) Group, formerly Inter-American Investment Corporation, or IIC), signed a loan package with the Durli Group operation in Paraguay, which is made up of Durli Leather SA and Veneza Inversiones SA. This loan package consisted of a 3 million USD loan from the China Co-Financing Fund for Latin America and the Caribbean (CHC), a 6 million USD loan from IDB Invest's own resources, and a 6 million USD loan from unspecified additional project partners. The terms of the loan are unknown, though IDB Invest describes it as a "long-term loan." The IDB approval date for this loan financing was December 11, 2017, and it refers to this project with code 12100-03 and name "Durli Brazil." More specifically, the loan will be used by the borrowers for the construction of a leather treatment plant in Paraguarí, Paraguay, as well as partially financing working capital needs and refinancing liabilities. A precise timeline of the plant's construction is unknown, but it appears environmental reviews were taking place in 2016, and the plant was completed and in operation by the end of 2018 at the latest. Starting in 2019, the plant fell under scrutiny for environmental contamination of Lake Ypoá and Caañabé Creek. The Durli Group (Durlicouros Indústria e Comércio de Couros, Exportação e Importação Ltda.) is a Brazil-based leather manufacturer. However, Durli Leather SA is a Paraguayan company. The IDB also arranged financing to Durli Group's organization in Brazil, captured in the linked project ID#85133. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella project ID #86526
Number of official sources
9
Number of total sources
12
Details
Cofinanced
Yes
Cofinancing agencies [Type]
IDB Invest (Inter-American Investment Corporation) [Intergovernmental Organization]
Direct receiving agencies [Type]
Durli Leather S.A. [Private Sector]
Veneza Inversiones PY. S.A. [Private Sector]
Implementing agencies [Type]
IDB Invest (Inter-American Investment Corporation) [Intergovernmental Organization]
China Co-Financing Fund for Latin America and the Caribbean (CHC) [Intergovernmental Organization]